Tag Archive for: business owner

business scorecard

How to Create and Use a Business Scorecard

Ever feel like you’re running your business on crossed fingers and gut instinct alone? 

Do you feel like you’re flying blind?

Wish you had a clearer picture of where you’re headed?

We get you. 

That’s where many of our clients are when they first approach us. 

Don’t worry. Get ready to ditch the guesswork and embrace a powerful tool that we’ve seen transform business: the scorecard.

Business Scorecard

But this isn’t 8th grade…why do grown adults, savvy entrepreneurs like us need scorecards? 

  • Everyone needs numbers to ground them and set goals in an organization. Scorecards give clear and concise direction to all team members. 
  • Scorecards let us focus on future indicators instead of lagging ones that are barely relevant. 
  • Speaking of the future, scorecards help us see helpful patterns and trends.
  • Scorecards can be concise and visual, which helps us process complex concepts quickly and more easily. 

And lastly…we need to stop managing businesses on assumptions. Letting our emotions lead the way instead of checking what the numbers are telling us typically isn’t the best solution. 

We saw this ourselves at New Economy. We experienced incredible growth, including our top line increasing by 40% once we began implementing a scorecard across our business. 

But we’d never leave you hanging. 

Let’s explore how you can create and use a scorecard to skyrocket your business success.

Steps to Create a Scorecard

There are many ways to create and use a business scorecard, but here’s what we’ve found works:

  1. Meet with Leadership: Gather your leadership team and brainstorm 10-15 key performance indicators (KPIs) that will help you manage the business effectively. These numbers should be relevant to your specific goals and industry.
    • DON’T fall into the trap of too many KPIs on your scorecard, it will only lead to overwhelm. 
  2. Assign Accountability: Make someone responsible for driving each KPI. This prevents anything important from falling to the wayside. 
    •  If a number is off track, that person owns it and is responsible for taking corrective action. 
  3. Set Goals: Establish clear, measurable goals for each KPI. This provides a benchmark for success and helps you track progress.
    • Remember the classic SMART goals formula – specific, measurable, achievable, realistic, and timely.  
  4. Measure Regularly: Track your KPIs on a weekly, monthly, quarterly, and annual basis. This allows you to identify trends and address issues promptly.
    • DON’T wait until the end of the year to measure and try to fix issues. 
  5. Root Cause Analysis: If a KPI is off track, dig deep to understand the root cause of the problem. This will enable you to develop effective solutions and prevent similar issues in the future, keeping your business in the green.
    • Make sure that it isn’t a witch hunt or blame game situation. While everyone is responsible for their number on the scorecard, it’s about finding the root cause and solutions together, with a curious and compassionate problem-solving approach. 

Everyone in the Business Needs a Number

You get a number. And you get a number. And YOU get a number!

It’s not just Oprah who can hand out the good stuff. 

Providing everyone with a clear number, which is their responsibility, can inspire confidence, motivation, and encourage everyone to work together collaboratively.  

You may be reluctant, thinking not everyone on the team needs one. But here’s why we encourage this approach: 

  1. Clarity: Numbers cut through murkiness and provide a clear picture of performance. They eliminate ambiguity and ensure everyone is on the same page.
  2. Accountability: Assigning numbers creates accountability. Each person knows what they are responsible for and is motivated to achieve their targets.
  3. Appreciation: Accountable people appreciate numbers. They provide a sense of ownership and a way to measure their contribution to the company’s success.
  4. Commitment: Numbers create clarity and commitment. When everyone knows what is expected of them, they are more likely to commit to achieving those goals.
  5. Competition: Numbers foster healthy competition. Employees are motivated to outperform their peers and strive for excellence.
  6. Results: Numbers produce results. By focusing on measurable goals, employees are more likely to achieve tangible outcomes.
  7. Teamwork: Numbers promote teamwork. When everyone is working towards a common goal, they are more likely to collaborate and support each other.
  8. Problem-Solving: Numbers help you solve problems faster. By identifying issues early on, you can take action before they become major obstacles.

However, it’s important to ensure you’ve built a strong company culture. You don’t want employees to prioritize numbers over the overall best interests of the organization, people, and society in general. A strong company culture, with values-based leadership, will help ensure that the assignment of a number will not get in the way of common sense and collaboration. 

3 Rules of Thumb for the Scorecard

Here are some more things we’ve learned in successfully implementing scorecards at New Economy and with our clients

  1. Leading Indicators: Use activity-based numbers that are leading indicators. For example, track leads generated instead of revenue, as leads are a predictor of future revenue.
  2. Proactive Tool: Use the scorecard as a proactive tool to make changes in your business. Don’t wait for problems to arise; use the data to identify potential issues and take action before they escalate.
  3. Prioritize Red Flags: Flag off-track items as red and give them the attention they need. Addressing problems promptly can prevent them from becoming major setbacks. Literally using the color red can visually signal a sense of importance and urgency when looking at a scorecard. 

3 Key Takeaways

At New Economy, we help companies harness their data to do a world of good for their business. I hope you’re starting to see why the clarity of a scorecard can be so helpful.

Scorecards can help you soar, instead of wildly flapping around and hoping something works. 

Here are my 3 key takeaways.

  1. Embrace the power of data: A scorecard is your compass, guiding you towards informed decisions and sustainable growth.
  2. Empower your team with numbers: Give everyone a metric to own and watch their engagement and performance take off.
  3. Make your scorecard a habit: Regularly review and refine your metrics to ensure they’re aligned with your evolving goals and challenges.

There you have it 🙂

Business Scorecard

New Economy Team Members are Experts in Accounting for Entrepreneurs

If identifying the best KPIs for a scorecard is not in your skill set, or you want to gain control of your finances to make smart decisions to build and grow your business, New Economy is an excellent partner

We’ll help you get your accounting and taxes done, and done right.

Schedule a time to meet with our Founder, Jeff, and discuss how we can add value to your situation.

Bank Loan

3 Keys to Getting a Bank Loan for Your Business to Keep Growing

Got a vision for business growth that’s bigger than your wallet?

It might be time to make friends with the bank. 

Or, at least, become much better acquainted! 

Today, we’re breaking down key tips for getting your business funded with a bank loan.

Put on your dress shirt, shine your shoes, and let’s build a funding relationship with your bank. 

Bank Loan

At New Economy, we’ve helped our clients raise over $75 million in capital. 

For many of our clients, raising capital wasn’t about pitching to fancy VCs (venture capitalists). 

It was landing a tried-and-true, humble bank loan. 

We’ve found these three keys to securing a loan to grow your business: 

  1. Organized, Persuasive Financials
  2. A Strategic Business Plan
  3. Knowledge of Your Credit History 

Let’s turn those dreams into dollars! 

Key 1: Money Talks, But Financials Shout 

Don’t let the word “financials” scare you. 

It’s your business’s story, but with numbers instead of words. 

Here’s what lenders are really looking for:

  • Healthy Business, Not Lottery Ticket: Show them you’re not a one-hit-wonder, but a sustainable, profitable venture who is prepared for the long haul.
  • Financials Are Your Resume: Your Profit & Loss statement, Budget, and Balance Sheet are your business’s resume. Make sure they are clean and up-to-date.
  • Cash Flow is King (or Queen) (or President): Make sure you can demonstrate strong cash flow. Check out our free cash flow projection tool which can help. 

Pro Tip: Organize your records like your business depends on it. Because in many cases, it does!  

Key 2: The Business Plan: Your Dating Profile!

Think of your business plan as a first date with the bank. 

You need to woo them with your vision, strategy, relationship experience, confidence, and potential. 

  • Your Love Letter: Tell them what your business is all about, why you’re so passionate about it, where it’s headed, and why they should invest in your love story.
  • Show Off Your Smarts: Market analysis, competitor research – prove you’ve done your homework and know your stuff.
  • Financial Projections: Show them the money – the money you’re going to make them with your brilliant business.

Pro Tip: Be ambitious, but realistic. Lenders love a visionary who’s also got their feet on the ground.

Key 3: Credit History: The Ghosts of Your Financial Past 

Your credit history shows highlights (and lowlights) of your past money adventures.  

A history of bad credit doesn’t necessarily exclude you from a loan, but you need to demonstrate you’ve since taken responsible action to set things right. 

Work towards paying off any debts and building back up your credit score, otherwise, they’ll come back to haunt you. 

Some banks will have strict criteria for what they’ll allow historically for someone to be eligible for a loan, but others are flexible, especially if you’re able to win them over with your current financials and business plan. 

Remember that both your personal and business credit histories will be considered when applying for most bank loans. 

Pro Tip: Check your credit report before you apply for a loan. It’s better to face any financial ghosts now than have them surprise you later.

Reminder: Shopping Around is Okay!

You don’t need to limit yourself to your current bank. It can take a bit more effort to find a new place for a loan, but each has its advantages. 

Pros of Getting Loans from Your Current Financial Institution 

  • If you already have a good working relationship, it may be easier for you to manage communication channels, and know what to expect.
  • Your “home” bank may have discounts for long-standing clients.
  • It can be a real sanity saver to have all your finances in the same place. 

Pros of Shopping Around

  • You might find some favorable rates and terms for new banks looking to woo you. 
  • Some banks will be more flexible in terms of offering loans if your credit isn’t stellar. 
  • You may find a new bank with incredible customer service, and decide to switch all your banking over at some point (that may be part of their “evil” plan, after all!).
  • Some online lenders are extremely convenient and price-effective (but do your homework to ensure you’re not being scammed).

Bank Loan

3 Key Takeaways

At New Economy, we want to help you flourish by taking control of your finances and getting the financing you need. Here are 3 key takeaways:

    1. Make sure your financials and business plan are organized and showing your growth and potential. 
    2. Become familiar with your credit history so you don’t scare your lenders. 
    3. Shop around and don’t forget about credit unions! You may find some more favorable rates and terms.

There you have it 🙂

New Economy Team Members are Experts in Accounting for Entrepreneurs

If you need help getting your finances organized, decreasing your taxes, and getting ready for a loan, New Economy is an excellent partner

We’ll help you get your accounting and taxes done, and done right.

Schedule a time to meet with our Founder, Jeff, and discuss how we can add value to your situation.

Businesses Fail

Top Reasons Why Most Businesses Fail After 10 Years and How to Avoid It

Built a business you’re proud of?  Now the real challenge begins.

It’s no secret that businesses fail.

In fact, the majority fail within the first 10 years. 

A thrilling entrepreneurial dream can turn into a nightmare if not managed well.

But it’s not inevitable. 

Let’s equip ourselves with insights to prevent this from becoming your reality. 

Businesses Fail

So, what are the chances a business will fail?

According to the Bureau of Labor Statistics

  • 20% of businesses fail within the first year
  • 45% within five years
  • 65% within the first 10 years

One of the interesting things is that these statistics remained fairly consistent for the past few decades. That means there’s a lot we can learn from the past years. 

Here are the top reasons why businesses fail:

  • Finances – Especially Cash Flow
  • Financing Challenges
  • Minimal Operational Efficiency 
  • Not Focusing on The Customer and Evolving Marketing Trends
  • Lack of Effective Business Vision, Strategy and Execution

Finances – Especially Cash Flow

According to SCORE, a whopping 82% of small business failures can be traced back to cash flow issues.

That doesn’t mean the business isn’t profitable. But without the cash to pay employees and vendors, the business isn’t going to last long. 

While profits are important, they can be a lagging indicator. Cash flow, on the other hand, is a real-time reflection of your financial health.  

Don’t get caught up in the illusion of profitability on paper – focus on managing your cash flow effectively.  

There are many reasons for cash flow problems

  • Poor budgeting and forecasting 
  • Slow collections from clients
  • Unexpected expenses and emergencies
  • Inventory mismanagement
  • Expanding quickly without a cash flow management plan

While we can’t solve every cash flow problem in one day, we do have a ton of articles about cash flow because it is such an important topic, including:

Here are some key strategies to keep your cash flow healthy:

  • Embrace the “lean and mean” startup mentality: Especially in the early years, avoid major expenses and prioritize a conservative approach. This doesn’t mean stifling growth; it means being strategic with your resources.
  • Develop a budget and stick to it: A well-crafted budget is your roadmap to financial health. Track your income and expenses meticulously, and identify areas where you can optimize spending.
  • Inventory management is crucial: Implement a system to track inventory levels, forecast demand, and avoid overstocking. This prevents unnecessary costs and ensures you have the right products available to meet customer needs.
  • Consider partnering with an accounting service: A qualified accounting service that fits your vibe can be a valuable asset, especially in the initial years. They can help you set up strong accounting practices, optimize your accounts receivable/payable systems, and ensure you’re on top of your tax obligations.

Other financial threats

Now that cash flow is covered, here is a bit more you’ll want to keep an eye out for in your finances: 

  • Inconsistent Budgeting and Record-Keeping:  Without a solid budget and meticulous tracking of income and expenses, it’s difficult to identify areas for improvement or predict potential cash flow challenges.
  • Tax Neglect: Taxes are a fact of life. Neglecting your tax obligations can lead to hefty penalties and interest charges.
  • Limited Financial Network: Not building strong relationships with lenders and financial advisors can leave you with limited options when challenges arise. These professionals can provide valuable guidance, access to financing, and help you navigate complex financial situations. Take the time to foster these relationships as soon as possible – you’ll be better equipped to weather financial storms and seize growth opportunities.

Financing Challenges

While cash flow management is crucial, it all starts with having enough financial resources in the first place. 

“Of course!” you say. 

Doesn’t everybody wish they had a blank check from a wealthy, ethical, no-strings-attached funder? 

Well sure, and we’d be happy if you’d give them our number!

But the reality is, many businesses with millions in funding still don’t succeed. A blank check isn’t the answer to everything. 

Unrealistic Funding Expectations

Launching a business requires investment. 

Whether it’s personal savings, loans, or venture capital, not having enough capital to cover initial expenses and operational costs can hinder your ability to gain traction and establish a strong foundation. Entrepreneurs are often brimming with optimism, but it’s important to have realistic expectations about how much funding you’ll need to get your business off the ground. Underestimating your financial requirements can lead to a funding gap that limits your progress.

For example, if you’re thinking of launching a business that will require significant marketing efforts to succeed, it may be better to wait until you’ve secured enough funding for marketing before taking the leap.

The “lean” method can only take you so far, and it varies wildly based on industry and situation.

Poor Financial Planning

Beyond simply securing funding, a well-defined financial plan is essential. This plan should outline your funding needs, potential revenue streams, and strategies for managing your cash flow. 

By carefully considering your funding needs, developing a sound financial plan, and securing adequate resources, you can set your business up for long-term success…with or without that magical blank check!  

Operational Efficiency: Streamlining Your Path to Success

Operational efficiency is all about optimizing your processes to achieve maximum results with minimal wasted resources. Here’s how inefficient operations can impact your business:

  • Wasted Time and Resources: Inefficient processes can lead to wasted time spent on repetitive tasks, unnecessary rework, and underutilized resources. This not only frustrates employees but also translates to lost productivity and higher costs.
  • Inconsistent Quality: Inefficiencies can lead to inconsistencies in product quality or service delivery. This can damage your reputation and customer satisfaction.
  • Hindered Growth: As your business grows, inefficient processes become bottlenecks, hindering your ability to scale effectively. Streamlining your operations allows you to handle increased demand and grab those growth opportunities.

Here are some ways to improve your operational efficiency:

  • Embrace Technology: Automation and digital tools can free up your team’s time for more strategic tasks. Invest in software solutions that automate repetitive tasks, streamline workflows, and improve data analysis.
  • Standardize Processes: Develop clear and consistent procedures for various tasks within your business. This ensures everyone is on the same page, reduces errors, and improves overall efficiency.
  • Regularly Analyze and Improve: Don’t settle for the status quo. Regularly evaluate your processes, identify areas for improvement, and implement changes to optimize your operations.
  • Foster a Culture of Efficiency: Encourage your team to identify inefficiencies and suggest improvements. By empowering your employees and fostering a culture of continuous improvement, you can create a more efficient and adaptable business.

By prioritizing operational efficiency, you can free up valuable resources, improve your bottom line, and position your business for sustainable growth. 

Remember, efficiency doesn’t mean cutting corners; it’s about working smarter, not harder.

Focusing on The Customer and Evolving Marketing Trends

“Over 40% of small businesses fail because there’s an insufficient need for their product or service.” – US Chamber of Commerce 

The business landscape is dynamic, constantly evolving with new technologies, consumer preferences, and economic shifts. 

Business owners need to stay on top of this – just think of how much happened in our world in the last 10 years! 

Many businesses lose touch with their audience, assuming their needs are the same as when they first started out. 

Others fail to keep their fingers on the pulse of evolving markets, missing out on perfect pivot opportunities and untapped market segments. 

Don’t let this be your story!

How to stay relevant and thrive in an evolving marketplace

  • Embrace Customer Centricity: Put your customers at the heart of everything you do. Gather customer feedback, analyze buying patterns, and adapt your offerings accordingly.
  • Foster a Culture of Innovation: Encourage a culture of creativity and experimentation within your organization. Invest in research and development, explore new technologies, and actively seek ways to improve your products and services to better meet your customers’ needs.
  • Stay Agile and Adaptable: Be prepared to change your strategies and business model as necessary.

Business Vision, Strategy, and Execution

A business without a clear vision and well-defined plan can flounder. And even with that, the Founder of EOS Gino Wickman states “Vision without execution is just a hallucination”.

Without a clear strategy, it’s hard to create and measure goals. 

Employees might be unsure of their goals and priorities beyond the day-to-day tasks, resulting in frustration, stress, and wasted effort. 

And of course, businesses get stuck in reactive decision-making, instead of being able to anticipate what’s needed for their success. 

How to Build a Roadmap for Success

  • Develop a Clear Vision: Clearly articulate your company’s long-term goals and aspirations. What impact do you want to make? What problem are you solving or what need are you fulfilling? A clear vision inspires your team, attracts talent, and guides your strategic direction.
  • Don’t Throw Out the Business Plan: Business plans aren’t just for the first days of business and getting funding – revisit your plan and adjust it based on what you’re learning. 
  • Embrace Forecasting: Don’t just use your budget as a guide, transform it into a forecast. Some of our customers re-forecast weekly! It’s simply part of their regular weekly process. At New Economy, we do the same. 
  • Systemize Strategic Planning: Make sure you have it in your calendar and are regularly taking the time to update your strategy as needed. 
  • Focus and measure execution: Measure your progress. Hold the team accountable for completing the top priorities in the Strategic Plan. 

Other factors

This list isn’t exhaustive. There are countless reasons why a business could fail:

  • Lack of supportive company culture
  • Founder or employee burnout 
  • Not finding and keeping the right team
  • Competitors  
  • Poor customer service

It doesn’t mean you have to be scared. 

It just means you need to take some deep breaths and put business planning into your calendar as a recurring appointment. 

3 Key Takeaways

At New Economy, we help you use financials to make more money and better business decisions so you’ll be in business as long as you want.

Here are 3 key takeaways:

  1. Master Your Cash Flow: Don’t be fooled by profitability on paper. Focus on strategies like budgeting, inventory management, and building strong relationships with lenders and financial advisors to maintain a healthy cash flow.
  2. Embrace Change and Agility: The business landscape is constantly evolving. Stay on top of customer trends, adapt your marketing strategies, and be prepared to pivot your business model as needed. A culture of innovation and customer-centricity is key to staying relevant.
  3. Plan for Success: Develop a clear vision, create a comprehensive business plan, and revisit and revise your strategy regularly. This roadmap will keep your team aligned, focused, and prepared for future challenges.

There you have it 🙂

Businesses Fail

New Economy Team Members are Experts in Accounting for Entrepreneurs

If identifying ways to decrease your taxes is not in your skill set or you want to gain control of your finances to make smart decisions to build and grow your business, New Economy is an excellent partner

We’ll help you get your accounting and taxes done, and done right.

Schedule a time to meet with our Founder, Jeff, and discuss how we can help your business survive and thrive each year!

culture

Tips to Building a Healthy Culture That Can Grow Your Business

We are focused on building a long-term business. 

Heck, we are at the 11-year mark so we are learning and applying what we learn.

Without a doubt, at the foundation of that is people.

And the people need vision, clarity, values, and a mission to get behind. 

Prompts to get everyone aligned and moving in the same direction.

People also need to be supported, heard, cared for, and loved. 

Yup, you heard that right, loved.

culture

If you are building a business or organization, culture should be a top priority. You should be constantly thinking about how to shape, cultivate, and prune the culture.

Before we jump in, here are a few reflection questions for you:

  • How would you rate the culture in your organization on a scale of 1-10?
  • How do you define culture? And what does a healthy culture look like?
  • What investments are you making to nurture the culture that you are looking to build?

As for us, we let our customers rate us. We believe that the awesome service we strive to deliver is a reflection of the culture we have created. So we ask our customer.

Check out what clients are saying here.

We believe that culture can be defined as a set of attitudes, behaviors, and practices shared within an organization which gives it a distinctive identity.

And as for investments, we make lots. 

We have developed a care team, called Wrap Around, to care for our employees. We constantly clarify our mission, vision, and values and share ways the employees can participate in building culture. And we set aside time each month to just have fun together. But more on that later.

We believe that one of the single most important investments you can make in your business is in creating a healthy culture. And this is critical in supporting the growth of the business.

In this article, you will learn about: 

  1. Why culture matters
  2. Who’s responsible for creating and building a culture
  3. Key investments to make in culture
  4. Top 3 Takeaways

Let’s dive in.

Why Culture Matters

Legendary management expert Peter Drucker said that “Culture eats strategy for breakfast”.

Ain’t that the truth?

We believe that culture sets the foundation. 

It sets the tone for how your people operate, communicate, treat each other, make decisions, and treat your customers.

Want more?

It also sets the tone for how you hire, how you fire, and how you promote. It helps you identify customers, vendors, and partners that will align well with your organization.

In Built to Last, Jim Collins discovered that enduring companies have a culture that defines who they are and what they value to attract like-minded individuals to them. 

People who fit the culture know what to do because they can feel why it is important. Conversely, those that don’t fit the culture feel out of place.

Culture matters because it scales. 

It permeates every aspect of the business.

We are living proof of this.

Here are some outcomes of a healthy culture that we have experienced:

  • Lower employee turnover and higher engagement
  • Increased profitability
  • Increased job satisfaction
  • Stronger relationships built on trust
  • Less time wasted on non-sense such as gossip, here say and drama
  • Higher probability of achieving Company and Individual goals
  • Alignment and focus on the greater good

Here are some outcomes of an unhealthy culture that we have witnessed:

  • Higher employee turnover and lower engagement
  • Decreased profitability
  • Decreased job satisfaction
  • Weaker relationships 
  • More time is wasted on non-sense such as gossip, here say, and drama
  • Lower probability of achieving Company and Individual goals
  • Lack of alignment and focus on the great good. 

As you can see there are healthy outcomes related to a healthy culture.

And there are unhealthy outcomes relating to an unhealthy culture.

In our experience, this is a very important part of any organization. 

We believe that there is no silver bullet and it takes time to create, shape, and build a culture that will last.

Who is Responsible for Creating and Building Culture?

We believe that everyone has a role in creating and building culture.

From the newest team member to the most experienced team member folks will be either adding to or taking away from culture.

But the buck stops with the CEO or Visionary. 

The CEO needs to take ownership of the culture.

Sure we want to get the leadership team involved. This will help to multiply the efforts and bring the culture alive in the organization. 

A key point is that if the CEO does not create, and then support, the building of the culture someone else will.

Do you want your unhappy employee, who is not a right fit for your company, to go around and create the atmosphere in the company?

Probably not.

So the leadership team needs to do some groundwork in the following areas to set the baseline:

  • Define the mission
  • Define the vision
  • Define the core values

Then the leadership needs to take the following steps to build the culture:

  • Remove employees or customers that are not a core value fit
  • Provide positive feedback to employees living in the culture
  • Provide constructive feedback to employees not living in the culture
  • Bang the drum and constantly get the Mission, Vision, and core values in front of the team

At New Economy, we have a quarterly company rollout. During that meeting, we review and bang the drum on the Mission, Vision, and Core Values.

Also, we use Slack as an internal communication platform. We have a channel called core value callouts. We encourage employees to “call out” an employee and give recognition when a core value is being lived out. This helps with positive reinforcement.

There are so many different directions you can take this in.

The Company needs a Core Value Champion which is typically the CEO.

Key Investments to Make in Culture

A healthy culture takes investments.

It takes investment in time, talent, and treasures.

The more you invest, the bigger your return.

Are you willing to make investments in your organization’s culture? 

Investments in Time

We believe that building a healthy culture happens over a period of time, and it is a lifelong pursuit.

Here are some of the examples of investments that we making in time at New Economy:

  • Monthly Culture Zoom – All employees participate. This is a fun event where we create time and space to get to know each other and have fun. It is not work-related.
  • Quarterly Wrap-Around Zoom – All employees participate. We have a care team called Wrap Around. Each quarter they host an event to “wrap their arms” around the team. Our last topic of discussion is generosity in the workplace. 
  • Monthly One-On-One Zoom – All employees participate. Our first question on these is “How are you doing and how can we help?” We make these about the employees and try to remove obstacles that are preventing them from being successful.

Investments in Talent

We believe that Companies rise and fall based on leadership. As we noted above, the Leadership team has a responsibility to create a culture.

Here are some of the examples of investments that we making in talent at New Economy:

  • We have training budgets for all team members of about $1,000 per year.
  • We invite all team members to attend the Global Leadership Summit.
  • We have created a Leadership Team Oath that leaders put into
  • We have our leaders participate in coaching programs like C12, Key Players, and How to Be a Good Boss

Investments in Treasure

All we are referring to with treasure is money. Beyond developing talent and creating time for developing culture it takes monetary investments.

We have mentioned a few above in the form of the value of time through meetings and training.

Here are a few more.

  • Above we mentioned our Wrap Around team. They invest $50 per month to partner with each employee in investing in a charitable organization picked by the employee. This is $600 per year of cash donated to good causes.
  • Above we mentioned our Wrap Around team. They invest $50 per month to partner with each employee in investing in their emotional, spiritual, and physical well-being. Think gym memberships, meditation apps, and meal delivery services. This is $600 per year of cash donated to good causes.

Building a healthy culture that will last takes time.

Also, it takes investments in the form of money, talent, and more time.

But it is so worth it.

Imagine working at the place you always dreamed of working.

You can make that happen by investing in building and growing your organization’s culture.

3 Key Takeaways

At New Economy, we want to help you gain control of your finances to make smart decisions. Part of that is understanding your finances and how to drive business performance.

Here are 3 key takeaways.

  1. The CEO needs to take ownership of being the Chief Culture Officer. And he has to encourage and hold the Leadership team accountable for building and nurturing the desired culture.
  2. There are no shortcuts. Building a culture takes time and lots of work. Do the work and you will reap the rewards.
  3. Make sure you are making investments in culture. Invest in people. Invest the time in the right meetings. Invest money in the right support to help people succeed. People who buy into your culture will champion it for you.

There you have it 🙂

culture

New Economy Team Members are Experts in Accounting for Entrepreneurs

If identifying ways to decrease your taxes is not in your skill set or you want to gain control of your finances to make smart decisions to build and grow your business, New Economy is an excellent partner

We’ll help you get your accounting and taxes done, and done right.

Schedule a time to meet with our Founder, Jeff, and discuss how we can add value to your situation.

Use Efficient Data to Reach Business Financial Goals

If you are a typical business owner, there’s a good chance you wake up at 2 am some mornings with an uneasy feeling – trying to crunch numbers in your head and get an accurate pulse of what’s going on in your business. But with out-of-date and tough-to-read data, things just aren’t adding up. 

So you take the pulse based on your gut. But deep down, you know this isn’t going to get your business where you want it to be. 

New Ecomony’s solution – formulate your data in a way that allows you to consistently and accurately take the pulse of your business so you can take effective action.

If this sounds good, read on.

business financial goals

Do You Have Business Goals? 

Goals are defined as a desired result that you, or a group of people, plan and commit to achieving. Does your business have them? If not, you should. 

Here are some of our best tips for setting goals for your business: 

Get Your Team Involved 

Your team is full of ideas and has an interest in the success of your business. Get them involved. Get their buy-in, and gather their thoughts and ideas. Lean into what they have to say and use it to help you build out your goals. 

Think Through Your Priorities

Think of your top 1-3 priorities in your business that need to be focused on to move it forward. This may take some deep thought and serious evaluation, but it will be worth it. 

Ask yourself:

  • Where is your business now? 
  • What are you trying to accomplish? 
  • Where are you trying to go? 

Your goals should help you accomplish your priorities. 

Create SMART Goals

Following the SMART goals framework helps you build good goals. 

Here’s what we mean:

  • S – Specific 
    • Make your goals specific and narrow.
  • M – Measurable
    • Define how you will measure your success towards reaching the goal.
  • A – Achievable 
    • You have to be able to accomplish your goal. Don’t set the bar too high. 
  • R – Relevant
    • Make sure your goals align with your priorities.
  • T – Time-based
    • Set a realistic end date for reaching your goals. 

Document Your Goals 

Once you’ve built out your goals, document them. 

Make them clear to your team. 

Hold yourself accountable. 

Having goals won’t do you any good if you are the only person who knows they exist. 

What Does Your Data Look Like? 

Financially speaking there are certain data components that can help to determine if you are on or off track. When you track the right data, you have the opportunity to make decisions to right the ship when things are off track.

Here’s what your data should look like: 

Every Business Should Have a 1, 3, and 5-Year Financial Plan

A strong financial plan will be broken into 1-year, 3-year, and 5-year segments. You’ll be able to refer back to your financial plan to bring the business you want to life. Think of it as a roadmap. 

You can break your financial plan down by month and measure it against actual financial results. This is the KEY. If something is off, you need to be able to gain an understanding as to why. 

Assign ownership to an individual to get to the root cause and offer up suggestions to get things back on track.

By following along with your plan, you can also narrow down what resources are needed as you go, like: 

  • Cash
  • Customers
  • Employees
  • Equipment 

As you build out your financial plan, use our top 4 financial tools to guide you. 

Use a Weekly Scorecard 

Every business should have a weekly scorecard. At New Economy, we believe a good Key Performance Indicator (KPI) in the form of a scorecard will help you manage data and provide you with a pulse of your business on a consistent basis. This will allow you to take prompt, effective action.

Here’s how you can create an effective scorecard

  • Identify and agree on the top 10 items to measure
  • Make someone accountable for each measure
  • Create goals for each measurable
  • Make the measurable time sensitive
  • Make someone accountable for getting the measurable and filling in the scorecard each week
  • Use it

Each Team Member Should be in Charge of a Measurable

Keeping track of your measurables is essential, but the task shouldn’t just fall on one person’s shoulders. Give everyone on your team a number to keep track of. Doing this: 

  • Cuts through murkiness between manager and direct reports
  • Create accountability
  • Provides clarity and commitment 
  • Produces results (this is a big one as we are trying to use data to drive towards our goals) 

For example, if you are a service-based company, you might measure revenue by employee, and each employee understands what is expected of them. If they achieve their measurable, which should be aligned with the business goals and overall measurables, then you have a high degree of alignment and can rest assured knowing team members rowing in the right direction.

business financial goals

Bring Your Data to Life, Achieve Your Goals

By having a Financial Model, Weekly Scorecard, and Individual Measurables, you are bringing to life the data road map which can be utilized to help you achieve your goals. 

A few final thoughts to remember before you put the plan into action:

  • Be open to learning. What is the data telling you?
  • Dig deep. Is something off track? Get to the root cause.
  • Apply what you have learned and get things back on track.

If you’re searching for a financial partner to help you use efficient data to reach your business goals, schedule a call with our Founder, Jeff! Our mission is to help entrepreneurs gain control of their finances so they can make smart decisions to build and grow their businesses, and we’d love to help you!

Using a KPI Scorecard to Grow Your Business

Picture a small plane flying over the Pacific Ocean. Halfway across the pilot announces, “I’ve got good news and bad news”. 

The bad news is the gauges are not working. We are lost and I have no idea how much fuel we have left, what direction we are headed, or how fast we are going. The good news is we are making great time!

Sound familiar? That’s how most entrepreneurs run their organizations. 

They are flying blind with no data to help them assess if they are on track, headed in the right direction, and making progress. But they are always optimistic that things will go their way.

At New Economy, we believe a good Key Performance Indicator (KPI) in the form of a scorecard will help you manage data and provide you with a pulse of your business on a consistent basis. This will allow you to take prompt, effective action. Say goodbye to managing assumptions, egos, and emotions.

Creating an Effective KPI Scorecard

Creating an effective KPI scorecard takes some strategy. Here are several key highlights to consider as you build your weekly, monthly, quarterly, and annual scorecard. 

Typically, we start with setting a leadership team. Your team will include your finance lead including your finance lead. If you don’t have an in-house finance lead, our article, “Does My Company Need a CFO?” will be helpful. 

For now, you can start working on the following to create your KPI scorecard:

1. Identify and Agree on The Top 10 Items to Measure

The success of your scorecard greatly depends on the items you choose to measure. 

These should be relevant to your business goals and provide you with enough insight to make essential decisions on a weekly, monthly, quarterly, and annual basis. 

We have suggested 10 financial metrics in this article, but keep in mind the metrics you track should be specific to your business and agreed upon by your team. 

2. Make Someone Accountable for Each Measurable 

As mentioned, your team should play a role in creating and carrying out your KPI scorecard. 

Assign someone a measurable and make them accountable for it. They will be the person responsible for getting it back on track if it goes off track.

3. Create Goals for Each Measurable 

Each of your measurables should have at least one associated goal. Once you’ve created a goal for each measurable, you’ll be able to track how they are performing in relation to your goal. 

4. Make the Measurable Time Sensitive 

At New Economy, we have measurables that are weekly, monthly, quarterly, and annually. This gives us a reason to continuously reference our measurables and ensure we are making progress in a timely manner. 

We recommend having time-sensitive measurables in your KPI scorecard as well. 

5. Make Someone Accountable for Getting the Measurable and Filling in the Scorecard Each Week

Accountability is a great byproduct of using KPI scorecards. Take advantage of the opportunity and assign specific measurables to each teammate. Ask that they gather the measurables and fill them into the scorecard each week.

Not only does this ensure the scorecard is being completed but it also makes the teammate feel involved, trusted, and responsible. 

6. Use it! 

Your KPI scorecard is only valuable if you use it! Meet with your leadership team regularly to determine if your business is on track or off track based on scorecard numbers. 

If things are off track, have the accountable person report back as to why and come up with some proposed solutions. This keeps the team involved and ensures you have a pulse on your financials.

A Few More KPI Scorecard Tips: 

As you begin leaning into this system, keep these last few tips in mind: 

  1. Push yourself to measure leading indications.
    1. These are the things that will get you the desired result. This ties back into point number one above. Focus on the most important measurables. 
  2. If things are off track, STOP. Figure out the issue to fix things.
    1. The point of the scorecard is to show you when you are on and/or off track with ample time to make adjustments. If you notice things trending in the wrong take action right away.  
  3. Consider creating a scorecard for each department in your company (Marketing, Operations, Sales, Accounting).
    1. Your scorecards will be more detailed and effective when you have one specifically created for each department. This allows for more relevant measurables to be tracked. 

Using a KPI Scorecard Has Grown Our Business

At New Economy, we know scorecards work because we’ve seen incredible growth since implementing them in our business. In fact, we’ve seen our top line increase by 40%. 

Which is why we suggest you use them too. Our mission is to help entrepreneurs gain control of their finances so they can make smart decisions to build and grow their businesses, so, schedule a time to meet with our founder, Jeff! He’d love to learn more about your business and explain how New Economy can help!